Deck 5: Planning in the Contemporary Organization

Question 1

A plan is a blueprint for action that prescribes the activities necessary for the organization to realize its goals.

Answer 1

True

Question 2

Although planning is helpful, many companies are very successful without planning.

Answer 2

False

Question 3

Planning is the process of administering and coordinating resources effectively, efficiently, and in an effort to achieve the goals of the organization.

Answer 3

False

Question 4

The overall focus of planning should be on identifying potential organizational problems.

Question 5

The four primary benefits of planning are: (1) better coordination, (2) a focus on forward thinking, (3) a human relations perspective, and (4) more effective control systems.

Question 6

The four primary benefits of planning are: (1) planning provides a road map for the organization; (2) planning provides coordination for a broad range of organizational activities; (3) planning forces managers to look to the future; and, (4) planning lays the foundation for evaluation and control of processes and progress within the organization.

Question 7

One of the benefits of planning is that it provides a foundation for the coordination of a broad range of organizational activities.

Question 8

The planning function forces managers to think ahead and consider resource needs and potential opportunities or threats that the organization may face in the future.

Question 9

One of the easiest parts of the planning function is anticipating changes in the general environment.

Question 10

One of the advantages of planning is that it has virtually no cost.

Question 11

It is hard to evaluate a process that has no parameters determined in the planning stage.

Question 12

Although planning itself may take time, studies suggest that new businesses actually make decisions faster if they have taken time to plan.

Question 13

One cost of planning is that it may delay decision-making.

Question 14

An organization's plan provides a foundation for control of the processes and progress of the company.

Question 15

Traditionally, there have been two basic approaches to planning depending on where in the organizational hierarchy the planning function was initiated: the top-down approach and the cross-functional approach.

Question 16

All planning is done through either a top-down approach or a bottom-up approach.

Question 17

When the CEO or Board of Directors sets a master plan, it is an example of top-down planning.

Question 18

Bottom-up planning efforts begin with the board of directors and the top executives of the organization.

Question 19

Bottom-up planning is initiated at the lowest levels of the organizational hierarchy.

Question 20

The primary advantage of top-down planning is that the individuals closest to the operating system, customers, or suppliers initiate the planning process.

Question 21

An advantage of top-down planning is that top management is most knowledgeable about all factors affecting the organization.

Question 22

A competitive advantage is any aspect of an organization's operations that distinguishes it from its competitors in a positive way.

Question 23

Strategic planning occurs at three primary levels within an organization: corporate, business, and functional.

Question 24

Corporate strategy addresses the question, "What business should we be in?"

Question 25

The objective of corporate level strategic planning is to determine how to compete within the present line of business.

Question 26

Diversification occurs when an organization chooses to add a new business unit to its portfolio of businesses.

Question 27

An example of related diversification was when Phillip Morris bought Kraft.

Question 28

The time horizon for corporate-level strategy is typically in the one-year range.

Question 29

Because of the nature of the planning, corporate strategic planning must usually be approved by the board of directors.

Question 30

Business strategy is more specific than functional strategy and spans a more limited time frame.

Question 31

Strategic Business Units or SBU's is another term for functional level departments.

Question 32

Functional strategy is developed by top-level executives to ensure that their units are supporting the corporate and business strategies of the organization.

Question 33

Mid-level and low-level managers usually do strategic functional planning and implementation.

Question 34

Operational planning focuses on determining the day-to-day activities that are necessary to achieve the long-term goals of the organization.

Question 35

Policies, procedures, and programs are all standing plans.

Question 36

Policies are general guidelines that influence how certain organizational situations will be addressed.

Question 37

Rules are intended to serve as guidelines for making organizational decisions.

Question 38

Single-use plans are designed to deal with organizational issues or problems that recur frequently.

Question 39

Trend Engineering has bought a new office building and will be moving their entire firm next month. The moving plans are an example of a single-use plan.

Question 40

The three most common single-use plans are programs, projects, and budgets.

Question 41

Budgets are single-use plans because a budget is only used once.

Question 42

MBO is a planning technique that provides a method for developing personalized plans that guide the activities of individual members of the organization.

Question 43

One of the benefits of MBO is that it provides a foundation for a more integrated and systems-oriented approach to planning.

Question 44

In some companies, a disadvantage of MBO is the amount of paperwork required by the organization to implement it.

Question 45

One of the disadvantages of MBO is that it may create a tendency to focus on short-term versus long-term planning.

Question 46

Once the MBO cycle is complete, the process ends and employees disband their groups.

Question 47

The Balanced Scorecard is an example of a system wide performance measurement process.

Question 48

Contingency planning requires the development of only one plan.

Question 49

Contingency planning requires the development of two or more plans, each of which is based on a different set of strategic or operating conditions that could occur.

Question 50

As planning, by definition, suggests change, many managers do not plan because they are uncomfortable with change.

Question 51

The process of outlining the activities necessary to achieve the goals of an organization is called

A) organizing.
B) leading.
C) planning.
D) directing.
E) controlling.

Question 52

The four major functions of management include organizing, leading, controlling, and

A) administrating.
B) directing.
C) supervising.
D) planning.
E) auditing.

Question 53

Joe, of Joe's Barbeque, has set a goal of opening one new restaurant each year for the next three years. Now he needs to outline the specific activities necessary to achieve this goal. This process is called

A) auditing.
B) scripting.
C) planning.
D) organizing.
E) directing.

Question 54

In determining the details necessary to achieve the overall mission and strategic goals, the executives at Jameson Construction created a "blueprint for action." The "blueprint for action is commonly referred to as a/an

A) mission statement.
B) portfolio of corporate objectives.
C) control document.
D) organizational script.
E) plan.

Question 55

Once a month, all of the department managers at Star Manufacturing meet to determine how the company's resources will be allocated in the next month and how the activities of the organization will be assigned to individuals and work groups. This set of activities is commonly referred to as

A) directing.
B) planning.
C) controlling.
D) scripting.
E) goal setting.

Question 56

From a very general perspective, the planning process offers four primary benefits. They are

A) better coordination, focus on historical thinking, a top-down work environment, and more effective control systems.
B) better supervision, focus on forward thinking, a top-down work environment, and substitution of empowerment for control.
C) better coordination, a road map as a guide, a focus on forward thinking, and more effective control systems.
D) better supervision, a focus on historical thinking, a road map, and more effective control systems.
E) better top management, a focus on forward thinking, a top-down work environment, and a substitution of empowerment for control.

Question 57

Which of the following is not a benefit of planning?

A) It provides a road map of the future.
B) It encourages a participatory work environment.
C) It results in more effective controls.
D) It forces a focus on forward thinking.
E) It results in better coordination.

Question 58

One benefit of planning is that departments work together better because all the departments know the goals and what is expected of each individual department. This is an example of the __________ benefit of planning.

A) more effective control systems
B) focus on forward thinking
C) participatory work environment
D) better coordination
E) access to a broader base of experience

Question 59

When Rob decided he wanted to expand his business he created a business plan to present to possible creditors. By completing __________ his company's future, he probably helped speed future decisions because the plans were there to help him.

A) a road map of
B) a mission statement for
C) a Balanced Scorecard for
D) a control system for
E) a focus for

Question 60

Computer companies such as Apple, Dell, and Gateway are forced to continually think about the future to make sure that they have products consumers want. Which managerial function is particularly important in helping organizations focus on the future?

A) leading
B) planning
C) organizing
D) supervising
E) controlling

Question 61

Knowing how the process should work and the expected results allows managers to evaluate the process and correct any deviations. This is an example of which benefit of planning?

A) a road map
B) a focus on forward thinking
C) better coordination
D) more effective control systems
E) speedier decision making

Question 62

John Thomas, a manager for Outback Steakhouse, Inc., has trouble finding time to plan. There are just too many other things to do. This consumption of time is referred to as a __________ of planning.

A) determent
B) cost
C) liability
D) by-product
E) side effect

Question 63

Unisys Corporation operates in fast-paced environments. As a result, one of the disadvantages of planning that Unisys needs to guard against is that planning can

A) lead to more effective control systems.
B) focus a firm on forward thinking.
C) cause delays in decision making.
D) result in better coordination.
E) engender a participatory work environment.

Question 64

Traditionally, there have been two basic approaches to planning, depending on where in the organizational hierarchy the planning function was initiated. These two basic approaches to planning are referred to as

A) inward planning and outward planning.
B) situational planning and contingent planning.
C) top-down planning and bottom-up planning.
D) functional planning and cross-functional planning.
E) profit-oriented planning and employee-oriented planning.

Question 65

Jim is a computer repair worker. He noticed that several of the firm's customers were asking him questions about networking computers. He suggested to his boss that Repair, Inc. expand into networking of computers - setting up networks for customers; advising customers how to maintain the networks; and, perhaps setting up a help desk for small companies that want networking. Jim's boss like the idea and thought his boss would also. He suggested that Jim give him a formal plan for a new network department to give to the company executives. This is an example of

A) better coordination.
B) top-down planning.
C) bottom-up planning.
D) cross-level planning.
E) contingency planning.

Question 66

At Mutual of Omaha, planning efforts begin with the board of directors and the top management team. This type of the planning by Mutual of Omaha is called __________ planning.

A) top-down
B) cross-functional
C) bottom-up
D) executive suite
E) hierarchical

Question 67

Planning that is initiated at the lowest level in the organization is referred to as __________ planning.

A) hierarchical
B) top-down
C) bottom-up
D) cross-level
E) team-oriented

Question 68

In very large corporations, planning for the corporation as a whole, needs to be done __________ as the __________ have a better conceptual picture of the whole organization.

A) top-down, middle managers
B) cross-functionally, middle managers
C) bottom up, first-level and middle managers
D) top-down, CEO and board of directors
E) bottom-up, CEO and board of directors

Question 69

Before the NFL draft, certain players on the New Orleans Saints team suggested a particular player to their scouting department. The scouting department forwarded the name on to a position assistant coach. The position assistant coach forwarded the name to the assistant head coach, who in turn forwarded the name along to head coach, Jim Haslett. Jim Haslett then forwarded the name of the player to the general manager, Randy Mueller, who selected the player in the draft. In this scenario, the Saints organization is using __________ planning.

A) hierarchical
B) cross-functional
C) top-down
D) bottom-up
E) shop floor

Question 70

Which of the following is the primary advantage of top-down planning?

A) The top managers of the firm, who presumably are most knowledgeable about the organization as a whole, drive the development of the plan.
B) Top-down planning involves the most people in the organization planning process.
C) Top-down planning is the least expensive of the approaches to planning.
D) Top-down planning is the favorite of Fortune 500 firms.
E) Top-down planning is necessary to compete in global markets.

Question 71

Which of the following is the primary advantage of bottom-up planning?

A) Bottom-up planning is the favorite of Fortune 500 firms.
B) Bottom-up planning permits the top managers of the firm, who presumably are most knowledgeable about the company as a whole, drive the planning process.
C) Bottom-up planning permits the employees who are closest to the customer, supplier, and operating system to drive the planning process.
D) Bottom-up planning is the least expensive of the various approaches to planning.
E) Bottom-up planning avoids the need to develop a participatory work environment.

Question 72

A primary purpose of the strategic planning process is to develop and maintain a/an

A) competitive advantage.
B) strategic plan.
C) contingency plan.
D) mission statement.
E) operational plan.

Question 73

Strategic planning occurs at the following three primary levels within an organization:

A) corporate, business, and financial.
B) corporate, business, and marketing.
C) marketing, business, and financial.
D) corporate, business, and functional.
E) functional, business, and financial.

Question 74

"What business should we be in? is the question asked at the __________ level.

A) business
B) functional
C) corporate
D) divisional
E) organizational

Question 75

At BellSouth's headquarters, decision-makers focus on developing a mix of business units that will meet the company's long-term growth and profitability goals. This is an example of __________ level strategic planning.

A) functional
B) corporate
C) business
D) operational
E) tactical

Question 76

When the board of directors decided to expand Walmart Corporation by adding a new division called Neighborhood Market, it was an example of

A) business planning.
B) functional planning.
C) cross-corporate planning.
D) cross-functional planning.
E) corporate planning.

Question 77

Which of the following statements is not true regarding corporate strategic planning?

A) Corporate strategy is formulated by the organization's board of directors and top-level executives.
B) Diversification is often at the core of corporate strategy.
C) Corporate strategy is relatively limited in nature and extends between six months and two years into the future.
D) Corporate strategy addresses the question "What business should we be in?"
E) Corporate strategic planing involves assessing the organization's portfolio of business to determine whether an appropriate mix exists.

Question 78

When Darden Restaurants added Smokey Bones restaurants to their prior mix of Red Lobster and Olive Garden restaurants, it was an example of

A) related diversification.
B) business level strategic planning.
C) unrelated diversification.
D) functional strategic planning.
E) cross-functional diversification.

Question 79

When Fisher-Price Toys was acquired by Quaker Oats, it was an example of __________. In 1993 when Fisher-Price joined the Mattel Family of Toys, it was an example of __________.

A) related diversification, business diversification
B) unrelated diversification, related diversification
C) related diversification, unrelated diversification
D) business strategy, related diversification
E) corporate strategy, unrelated diversification

Question 80

The managers of the Dairy Division of a company that also has a Fruit Juice Division and a Snack Foods Division should be focusing on what level of strategy?

A) functional level strategy
B) focus on drinking the inventory
C) business level strategy
D) marketing strategy
E) corporate level strategy